Gce Model Questions Vol1 2024 Economics Question 12

Practice objective / multiple choice question 12 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Easy Difficulty
Question 12 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

The market for a good is described by the linear equations \( Q_{d}=1000-50P \) (demand) and \( Q_{s}=30P-200 \) (supply), where \(P\) is the price in pounds and \(Q\) the quantity.\n(a) Find the equilibrium price and quantity.\n(b) The government introduces a price ceiling of £12. Calculate the resulting shortage.

Answer Options

A. Equilibrium price £10, quantity 500 units; shortage under £12 ceiling = 300 units
B. Equilibrium price £20, quantity 200 units; shortage under £12 ceiling = 100 units
Correct Answer C. Equilibrium price £15, quantity 250 units; shortage under £12 ceiling = 240 units
D. Equilibrium price £15, quantity 250 units; shortage under £12 ceiling = 200 units
Correct Answer
C
Correct Option:
Equilibrium price £15, quantity 250 units; shortage under £12 ceiling = 240 units

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 12. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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